The IRS is distributing approximately $2.4 billion to taxpayers who did not receive their COVID stimulus payments. By the end of January, about 1 million taxpayers will receive special payments of up to $1,400 from the IRS.
Who is Eligible?
The special payments are being sent to taxpayers who filed a 2021 tax return but failed to claim a Recovery Rebate Credit. This credit is for individuals who did not receive one or more Economic Impact Payments (EIP), also known as stimulus payments.
Payment Amounts
Eligible taxpayers will receive varying amounts, with a maximum of $1,400 per individual. The total amount being distributed by the IRS is $2.4 billion.
Why the Payments?
The IRS identified that many eligible taxpayers did not claim the Recovery Rebate Credit on their 2021 tax returns. To rectify this, the IRS is making automatic payments to these individuals.
How to Receive the Payment
If you qualify for the Recovery Rebate Credit, you do not need to take any action. The IRS will send letters to eligible taxpayers and the payments will be made via direct deposit or check by late January.
Filing for 2021 Tax Return
If you haven't filed your 2021 tax return yet, you can still receive the payment by filing a tax return and claiming the Recovery Rebate Credit by the April 15, 2025 deadline.
Rounds of COVID Stimulus Payments
There were three rounds of stimulus payments totaling $814 billion. The amounts varied based on income, tax filing status, and number of dependents.
In summary, the IRS is taking steps to ensure that eligible taxpayers receive the financial support they are entitled to during these challenging times.
